Crown Castle, PNC, Worthington tap primary; FMS notes price tighter than talk; spreads flat

By Cristal Cody

Tupelo, Miss., July 25 – Investment-grade bond pricing action picked up on Tuesday with about $4.7 billion of supply brought to market in four deals during the session.

Crown Castle International Corp. led the deal action with a $1.75 billion two-part offering of fixed-rate notes. Crown Castle priced $750 million of 3.2% seven-year notes at 99.721 to yield 3.244%, on the tight side of talk at a spread of Treasuries plus 110 bps. The company sold $1 billion of 3.65% 10-year notes at 99.93 to yield 3.658% and a Treasuries plus 133 bps spread, also on the tight side of guidance.

PNC Bank, NA sold $1.25 billion of five-year fixed- and floating-rate notes.

Worthington Industries Inc. priced a $200 million sale of 15-year senior notes.

Also on Tuesday, FMS Wertmanagement placed $1.5 billion of five-year senior global benchmark notes tighter than talk. The 2% notes priced at a spread of mid-swaps plus 12 bps or Treasuries plus 19.25 bps, according to a market source. The notes were initially talked on Monday to price in the mid-swaps plus 15 bps area and later guided to price in the mid-swaps plus 14 bps area.

Pricing action is expected to be limited on Wednesday with the release of the Federal Reserve’s monetary policy announcement, according to a market source.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 56 basis points.

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